Flagship Communities Real Estate Investment Trust Announces Fourth Quarter and Full Year 2025 Results

Not for distribution to U.S. newswire services or dissemination in the United States.

TORONTO, March 09, 2026 (GLOBE NEWSWIRE) — Flagship Communities Real Estate Investment Trust (“Flagship” or the “REIT”) (TSX: MHC.U; MHC.UN) today released its fourth quarter and full year 2025 results. The financial results of the REIT have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Results are shown in U.S. dollars, unless otherwise noted.

Fourth Quarter 2025 Results
Compared to Fourth Quarter 2024 Results

• Rental revenue and related income was $27.5 million, an increase of 15.6% compared to $23.8 million
• Same Community Revenue¹ was $23.2 million, up 8.2% compared to $21.4 million
• Net income and comprehensive income was $45.5 million compared to $25.2 million
• Net Operating Income (“NOI”) was $18.4 million, up 15.3% compared to $15.9 million
• Same Community NOI¹ was $15.5 million, an increase of 5.9%, compared to $14.6 million
• NOI Margin¹ was 67.0% compared to 67.1%
• Same Community NOI Margin¹ was 66.6% compared to 68.0%
• Funds from operations (“FFO”) per unit (diluted)² was $0.365 compared to $0.384, which was a (decrease) of $(0.019) per unit or (4.9)%
• FFO adjusted per unit (diluted)² was $0.372 compared to $0.310 which was an increase of $0.062 per unit or 20.0%
• Adjusted funds from operations (“AFFO”) per unit (diluted)² was $0.330 compared to $0.375, which was a (decrease) of $(0.045) per unit or (12.0)%
• AFFO adjusted per unit (diluted)² was $0.338 compared to $0.301 which was an increase of $0.037 per unit or 12.3%
• Rent Collections¹ were 99.0%, an increase of 0.1% compared to 98.9%
• Flagship announced two strategic acquisitions for total consideration of US$79 million, expanding its presence in both Indiana and Ohio

Full Year 2025 Results
Compared to Full Year 2024 Results

• Rental revenue and related income was $103.4 million, an increase of 17.3% compared to $88.1 million
• Same Community Revenue¹ was $91.7 million, up 10.9% compared to $82.7 million
• Net income and comprehensive income was $115.7 million, an 11.7% increase from $103.5 million
• NOI was $68.4 million, an increase of 17.1% compared to $58.4 million
• Same Community NOI¹ was $60.8 million, an increase of 11.0% compared to $54.7 million
• NOI Margin¹ was 66.2% compared to 66.3%
• Same Community NOI Margin¹ was 66.2% for both periods
• FFO per unit (diluted)² was $1.446 compared to $1.290, which was an increase of $0.156 per unit or 12.1%
• FFO adjusted per unit (diluted)² was $1.435 compared to $1.265 which was an increase of $0.170 per unit or 13.4%
• AFFO per unit (diluted)² was $1.317 compared to $1.167 which was an increase of $0.150 per unit or 12.9%
• AFFO adjusted per unit (diluted)² was $1.306 compared to $1.142 which was an increase of $0.164 per unit or 14.4%
• Rent Collections¹ were 99.2%, an increase of 0.2% compared to 99.0%

As at December 31, 2025

• NAV¹ and NAV per Unit¹ were $804.8 million and $31.93, respectively, compared to $670.8 million and $26.71 as at December 31, 2024, respectively
• Debt to Gross Book Value¹ was 39.2% compared to 38.1% as at December 31, 2024
• Total portfolio Occupancy¹ was 82.9%, compared to 83.5% as at December 31, 2024
• Same Community¹ Occupancy¹ was 83.9%, a (decrease) of (0.2)% when compared to Same Community Occupancy as at December 31, 2024, which was 84.1%

¹See “Other Real Estate Industry Metrics”
²See “Non-IFRS Financial Measures”

“2025 was a milestone year as we celebrated our fifth year as a publicly traded REIT and our 30th year in the manufactured housing industry,” said Kurt Keeney, President and CEO. “Throughout the year, we delivered the strong, consistent performance that has defined our business since going public, including continued growth in FFO adjusted per unit and AFFO adjusted per unit. We remain confident in the outlook for manufactured housing, supported by a persistent shortage of new supply and the continued affordability advantage our communities offer relative to traditional single-family housing and multi-family apartments.”

Financial Summary

Financial Overview

Rental revenue and related income in the fourth quarter of 2025 was $27.5 million, up 15.6% compared to the same period last year. This increase was primarily driven by Acquisitions as well as lot rent increases across the REIT’s portfolio. Rental revenue and related income for the year ended December 31, 2025 was $103.4 million, or a 17.3% increase compared to the prior year, driven by the same factors.

Same Community Revenue for the fourth quarter and year ended December 31, 2025 was $23.2 million and $91.7 million, respectively, exceeding those for the fourth quarter and year ended December 31, 2024 by approximately $1.8 million and $9.0 million or 8.2% and 10.9%, respectively. The increase in Same Community Revenue was a result of increasing monthly lot rent year over year and increased utility reimbursements. Ancillary revenues, which are comprised of amenity fees including cable and internet reimbursements, also contributed and are a significant upside to overall utility recapture.

Net income and comprehensive income for the three months ended December 31, 2025 was approximately $20.4 million more than the same period last year, as a result of the fair value adjustments on investment properties and Class B Units being $21.2 million more than in the same period in 2024. Net income and comprehensive income for the year ended December 31, 2025 was $115.7 million, an increase of $12.1 million from the prior period for the same factors.

NOI and NOI Margin for the fourth quarter of 2025 were $18.4 million and 67.0%, respectively, compared to $15.9 million and 67.1% during the fourth quarter of 2024. NOI and NOI Margin for the year ended December 31, 2025 were $68.4 million and 66.2%, respectively, compared to $58.4 million and 66.3% for the year ended December 31, 2024.

Same Community NOI Margins for the fourth quarter and year ended December 31, 2025 were 66.6% and 66.2% respectively, a (decrease) of (1.4)% and NIL, respectively, over the same periods last year.

While NOI saw an increase from amenity fees, NOI Margins were negatively impacted due to these corresponding services having a lower margin than what has historically been achieved by the REIT.

Same Community Occupancy was 83.9% as at December 31, 2025, a (decrease) of (0.2)% when compared to Same Community Occupancy as at December 31, 2024, which was 84.1%.

During the year ended December 31, 2025, one MHC completed an expansion that resulted in an addition of 36 lots. The addition of these 36 lots (decreased) Same Community Occupancy by approximately (0.2)% as at December 31, 2025, but the REIT expects to have these lots occupied, and to add additional lots to meet demand, in the normal course of business.

Adjusted for the impact of this expansion, total portfolio Occupancy and Same Community Occupancy would have been 83.1% and 84.1%, respectively, as at December 31, 2025.

FFO for the fourth quarter of 2025 was $9.2 million, a (decrease) of (4.8)% from the fourth quarter of 2024. FFO per unit (diluted) for the three months ended December 31, 2025 and 2024 was $0.365 and $0.384, respectively, resulting in a (decrease) of (4.9)%. FFO and FFO per unit for the year ended December 31, 2025 were $36.4 million and $1.446, an 18.2% and 12.1% increase, respectively, compared to the year ended December 31, 2024.

FFO adjusted was $9.4 million for the fourth quarter of 2025, a 20.3% increase compared to the same period last year. FFO adjusted per unit for the fourth quarter of 2025 was $0.372, a 20.0% increase compared to the same period in 2024. FFO adjusted and FFO adjusted per unit for the year ended December 31, 2025 were $36.1 million and $1.435, respectively, a 19.7% and 13.4% increase, respectively, compared to the same period last year.

AFFO for the fourth quarter of 2025 was $8.3 million, a (decrease) of (11.7)% from the fourth quarter of 2024. AFFO per unit for the three months ended December 31, 2025 and 2024 was $0.330 and $0.375, respectively, a (decrease) of (12.0)%. AFFO and AFFO per unit for the year ended December 31, 2025 were $33.1 million and $1.317, a 19.1% and 12.9% increase, respectively, compared to the year ended December 31, 2024.

AFFO adjusted was $8.5 million for the fourth quarter of 2025, a 12.4% increase compared to the same period last year. AFFO adjusted per unit for the fourth quarter of 2025 was $0.338, a 12.3% increase compared to the same period in 2024. AFFO adjusted and AFFO adjusted per unit for the year ended December 31, 2025 were $32.9 million and $1.306, a 20.7% and 14.4% increase, respectively, compared to the year ended December 31, 2024.

Rent Collections for the fourth quarter of 2025 were 99.0%, an increase of 0.1% from the same period in 2024. Rent Collections for the year ended December 31, 2025 were 99.2%, a 0.2% increase from the same period last year.

As at December 31, 2025 the REIT’s Weighted Average Mortgage and Note Interest Rate (see “Other Real Estate Industry Metrics” for more information) was 4.54%. The REIT’s Weighted Average Mortgage and Note Term (see “Other Real Estate Industry Metrics” for more information) to maturity was 8.2 years. Flagship has no substantial debt maturities until 2030.

Flagship’s Liquidity (see “Other Real Estate Industry Metrics” for more information) as at December 31, 2025 was approximately $19.7 million consisting of cash, cash equivalents, and available capacity on lines of credit.

Operations Overview

During the fourth quarter of 2025, Flagship acquired an MHC in Seymour, Indiana, for total consideration of approximately US$45 million, which was funded primarily through a new US$70 million unsecured term loan. Additionally, the REIT completed the acquisition of an MHC portfolio in the Greater Cincinnati, Ohio market, comprised of three separate MHCs for total consideration of US$34 million, which was funded through the assumption of US$14.3 million of debt at a weighted average interest rate of 2.84% as well as additional debt financing sources.

As at December 31, 2025, the REIT owned a 100% interest in a portfolio of 85 MHCs with 16,450 lots as well as two recreational vehicle (“RV”) resort communities with 470 sites, located in eight contiguous states. The table below provides a summary of the REIT’s portfolio as of December 31, 2025, compared to December 31, 2024:

Outlook

Flagship maintains a positive outlook for the MHC industry and believes it offers significant upside potential to investors. This is primarily due to the MHC industry’s consistent track record of historical outperformance relative to other real estate classes. Rising home ownership costs and limited new supply, have led to greater housing unaffordability for many Americans. Additionally, the lack of supply of new manufactured housing communities given the various layers of regulatory restrictions, competing land uses and scarcity of land zoned has created high barriers to entry for new market entrants.  

Other macro and MHC industry-specific characteristics and trends that support Flagship’s positive outlook include:

• Increasing household formations;
• Lower housing and rental affordability;
• Declining single-family residential homeownership rates

Non-IFRS Financial Measures

In this news release, the REIT uses certain financial measures that are not defined under IFRS including certain non-IFRS ratios, to measure, compare and explain the operating results, financial performance and cash flows of the REIT. These measures are commonly used by entities in the real estate industry as useful metrics for measuring performance. However, they do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other publicly traded entities. These measures should be considered as supplemental in nature and not as a substitute for related financial information prepared in accordance with IFRS.

Funds from operations (“FFO”) and adjusted funds from operations (“AFFO”) are calculated in accordance with the definition provided by the Real Property Association of Canada (“REALPAC”).

FFO is defined as IFRS consolidated net income (loss) adjusted for items such as distributions on redeemable or exchangeable units (including distributions on the Class B Units), unrealized fair value adjustments to Class B Units, unrealized fair value adjustments to investment properties, unrealized fair value adjustments to unit based compensation, loss on extinguishment of acquired mortgages payable, gain on disposition of investment properties, and depreciation. FFO should not be construed as an alternative to consolidated net income (loss), or consolidated cash flows provided by (used in) operating activities determined in accordance with IFRS. The REIT’s method of calculating FFO is substantially in accordance with REALPAC’s recommendations but may differ from other issuers’ methods and, accordingly, may not be comparable to FFO reported by other issuers. Refer to section “Reconciliation of FFO, FFO per unit, FFO adjusted, FFO adjusted per unit, AFFO, AFFO per unit, AFFO adjusted and AFFO adjusted per unit” for a reconciliation of FFO and FFO adjusted to net income and comprehensive income.

“FFO per unit (diluted)” is defined as FFO for the applicable period divided by the diluted weighted average unit count (including Units, Class B Units, vested Restricted Units (“RUs”) and vested Deferred Trust Units (“DTUs”)) during the period.

“FFO adjusted” is defined as FFO adjusted for non-real estate industry specific operating transactions. FFO adjusted presents FFO in a normalized manner that is substantially in accordance with REALPAC’s recommendations. FFO adjusted may, as transactions occur, include adjustments that were not included in the definition of FFO adjusted in a previous period but are included in the current period to present FFO in a normalized manner that is substantially in accordance with REALPAC’s recommendations. Adjustments for the three months and years ended December 31, 2025 and 2024 included mortgages payable settlement expense, which is comprised of prepayment penalties, defeasance, amortization of financing costs, and other costs associated with the refinance and payoff of certain mortgages payable prior to maturity; insurance proceeds related to covered damage to investment property; non-recurring general and administrative expenses related to non-real estate industry specific operating transactions; and (gain) on mortgages payable settlement, which includes any mark-to-market adjustment remaining at the time of refinance and payoff of associated mortgages payable prior to maturity.

“FFO adjusted per unit (diluted)” is defined as FFO adjusted for the applicable period divided by the diluted weighted average unit count (including Units, Class B Units, vested RUs and vested DTUs) during the period.

AFFO is defined as FFO adjusted for items such as maintenance capital expenditures, and certain non-cash items such as amortization of intangible assets, and premiums and discounts on debt and investments. AFFO should not be construed as an alternative to consolidated net income (loss), or consolidated cash flows provided by (used in) operating activities determined in accordance with IFRS. The REIT’s method of calculating AFFO is substantially in accordance with REALPAC’s recommendations. The REIT uses a capital expenditure reserve of $75 per lot per year and $1,100 per rental home per year, for the years ending, or ended, December 31, 2025 and 2024, respectively, in the AFFO calculation. This reserve is based on management’s best estimate of the cost that the REIT may incur related to maintaining the investment properties. This may differ from other issuers’ methods and, accordingly, may not be comparable to AFFO reported by other issuers. Refer to section “Reconciliation of FFO, FFO per unit, FFO adjusted, FFO adjusted per unit, AFFO, AFFO per unit, AFFO adjusted and AFFO adjusted per unit” for a reconciliation of AFFO and AFFO adjusted to net income and comprehensive income.

“AFFO Payout Ratio” is defined as total cash distributions of the REIT (including distributions on Class B Units) divided by AFFO.

“AFFO per unit (diluted)” is defined as AFFO for the applicable period divided by the diluted weighted average unit count (including Units, Class B Units, vested RUs and vested DTUs) during the period.
“AFFO adjusted” is defined as AFFO adjusted for transactions that are not considered recurring measures of economic earnings with the goal of presenting AFFO in a normalized manner that is substantially in accordance with REALPAC’s recommendations. AFFO adjusted may, as transactions occur, include adjustments that were not included in the definition of AFFO adjusted in a previous period but are included in the current period to present AFFO in a normalized manner that is substantially in accordance with REALPAC’s recommendations. Adjustments for the three months and years ended December 31, 2025 and 2024 included mortgages payable settlement expense, which is comprised of prepayment penalties, defeasance, amortization of financing costs, and other costs associated with the refinance and payoff of certain mortgages payable prior to maturity; insurance proceeds related to covered damage to investment property; non-recurring general and administrative expenses related to non-real estate industry specific operating transactions; and (gain) on mortgages payable settlement, which includes any mark-to-market adjustment remaining at the time of refinance and payoff of associated mortgages payable prior to maturity.

“AFFO adjusted Payout Ratio” is defined as total cash distributions of the REIT (including distributions on Class B Units) divided by AFFO adjusted.

“AFFO adjusted per unit (diluted)” is defined as AFFO adjusted for the applicable period divided by the diluted weighted average unit count (including Units, Class B Units, vested RUs and vested DTUs) during the period.

The REIT believes these non-IFRS financial measures and ratios provide useful supplemental information to both management and investors in measuring the operating performance, financial performance, and financial condition of the REIT. The REIT also uses AFFO and AFFO adjusted in assessing its distribution paying capacity.

Other Real Estate Industry Metrics

Additionally, this news release contains several other real estate industry financial metrics:

• “Acquisitions” means the REIT’s properties, excluding Same Community (as defined below) (i.e., Acquisitions Revenue, as well as Acquisitions net operating income (“NOI”), and Acquisitions NOI Margin (as defined below)), and such measure is used by management to evaluate period-over-period performance of such investment properties throughout both respective periods. These results reflect the impact of acquisitions of investment properties.
• “Debt to Gross Book Value” is calculated by dividing indebtedness, which consists of the total principal amounts outstanding under mortgages and note payable, net and credit facilities, by Gross Book Value (as defined below). Refer to section “Calculation of Other Real Estate Industry Metrics – Debt to Gross Book Value.”
• “Gross Book Value” means, at any time, the greater of: (a) the value of the assets of the REIT and its consolidated subsidiaries, as shown on its then most recent consolidated statements of financial position prepared in accordance with IFRS, less the amount of any receivable reflecting interest rate subsidies on any debt assumed by the REIT; and (b) the historical cost of the investment properties, plus (i) the carrying value of cash and cash equivalents, (ii) the carrying value of mortgages receivable; and (iii) the historical cost of other assets and investments used in operations.
• “Liquidity” is defined as (a) cash and cash equivalents, plus (b) borrowing capacity available under any existing credit facilities.
• “Net Asset Value” or “NAV” is calculated by taking unitholders’ equity plus Class B Units, vested RUs and vested DTUs. NAV provides an indication of the total value of the REIT’s investment properties, after accounting for outstanding mortgages and note payable. NAV also provides an indication of the changes in the REIT’s overall value resulting from the performance of its assets. The reason for adding back Class B Units, vested RUs and vested DTUs is that they are economically equivalent to Units, receive the same distributions (or distribution equivalents) as Units, and can be exchanged for Units.
• “Net Asset Value per Unit” or “NAV per Unit” is defined as NAV divided by the total number of units (including Units, Class B Units, vested RUs and vested DTUs) outstanding.
• “NOI Margin” is defined as NOI divided by total revenue. Refer to section “Calculation of Other Real Estate Industry Metrics – NOI and NOI Margin”.
• “Occupancy” is defined as the number of economically occupied lots in a community, defined as a lot that is generating revenue for the REIT as opposed to a lot that is physically occupied by a vacant structure, divided by the total lots in that community.
• “Rent Collections” is defined as the total cash collected in a period divided by total revenue charged in that same period.
• “Same Community” means all properties which have been owned and operated continuously since the first day of the preceding calendar year by the REIT and such measures (i.e., Same Community Revenue, as well as Same Community NOI, Same Community NOI Margin, and Same Community Occupancy) are used by management to evaluate period-over-period performance.
• “Weighted Average Lot Rent” means the lot rent for each individual community multiplied by the total lots in that community summed for all communities divided by the total number of lots for all communities.
• “Weighted Average Mortgage and Note Interest Rate” is calculated by multiplying the interest rate of each outstanding mortgage and note by the mortgage and note balance (as applicable) and dividing the sum by the total mortgage and note balance.
• “Weighted Average Mortgage and Note Term” is calculated by multiplying the remaining term of each mortgage and note by the mortgage and note balance (as applicable) and dividing the sum by the total mortgage and note balance.

Reconciliation of FFO, FFO per unit, FFO adjusted, FFO adjusted per unit, AFFO and AFFO per unit, AFFO adjusted and AFFO adjusted per unit

Calculation of Other Real Estate Industry Metrics
NOI and NOI Margin

NAV and NAV per Unit

1. Total Units includes Units, Class B Units, vested RUs and vested DTUs

Debt to Gross Book Value

Forward-Looking Statements

This news release contains statements that include forward-looking information (within the meaning of applicable Canadian securities laws). Forward-looking statements are identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may”, “can”, “could”, “would”, “must”, “estimate”, “target”, “objective”, and other similar expressions, or negative versions thereof, and include statements herein concerning: the REIT’s investment strategy, objectives and creation of long-term value; the REIT’s intention to continue to expand in its existing operational footprint, increasing its presence in core markets to enhance efficiencies and achieve economies of scale, and to target growth markets; the REIT’s intention to convert rental homes to tenant owned homes as opportunities allow; expected sources of funding for future acquisitions and the expected performance of acquisitions; macro characteristics and trends in the United States real estate and housing industry, as well as the manufactured housing community (“MHC”) industry specifically; the REIT’s distribution policy and intended sources of cash therefor; and the REIT’s target indebtedness as a percentage of Gross Book Value. These statements are based on the REIT’s expectations, estimates, forecasts, and projections, as well as assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies that could cause actual results to differ materially from those that are disclosed in such forward-looking statements. While considered reasonable by management of the REIT as at the date of this news release, any of these expectations, estimates, forecasts, projections, or assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those expectations, estimates, forecasts, projections, or assumptions could be incorrect. Material factors and assumptions used by management of the REIT to develop the forward-looking information in this news release include, but are not limited to, the REIT’s current expectations about: vacancy and rental growth rates in MHCs and the continued receipt of rental payments in line with historical collections; demographic trends in areas where the MHCs are located; further MHC acquisitions by the REIT; the applicability of any government regulation concerning MHCs and other residential accommodations; the availability of debt financing and future interest rates, as there is no guarantee that the future Federal Reserve will continue to hold or decrease interest rates; increasing expenditures and fees, in connection with the ownership of MHCs, driven by inflation or tariffs; tax laws; general economic conditions; and the recent increased volatility of equity markets in the United States. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as they are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed or referenced under the heading “Risks and Uncertainties” herein or otherwise disclosed in the REIT’s Annual Management’s Discussion & Analysis or the Annual Information Form. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Further, certain forward-looking statements included in this news release may be considered as “financial outlook” for purposes of applicable Canadian securities laws, and as such, the financial outlook may not be appropriate for purposes other than to understand management’s current expectations and plans relating to the future, as disclosed in this news release. Forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Fourth Quarter 2025 Results Conference Call and Webcast

About Flagship Communities Real Estate Investment Trust 

Flagship Communities Real Estate Investment Trust (TSX: MHC.U; MHC.UN) is a leading operator of affordable residential Manufactured Housing Communities primarily serving working families seeking affordable home ownership. The REIT owns and operates exceptional residential living experiences and investment opportunities in family-oriented communities in Kentucky, Indiana, Ohio, West Virginia, Tennessee, Arkansas, Missouri, and Illinois. To learn more about Flagship, visit www.flagshipcommunities.com.

For further information, please contact:

Eddie Carlisle, Chief Financial Officer
Flagship Communities Real Estate Investment Trust
Tel: +1 (859) 568-3390